KBW Reports On SWS Capital Equity

Keefe, Bruyette, & Woods has issued a report on the funding agreement from SWS Group Inc. SWS. According to KBW, "SWS announced a $100 mil. funding agreement with Hilltop Holdings Inc. and Oak Hill Capital Partners. Each firm will invest $50 mil. in the firm through a senior unsecured loan and warrants to purchase 8.7 mil shares each of common equity in SWS. While the capital raise is highly dilutive to EPS and BV, we believe that if successful, it should address the deteriorating capital issues at the bank subsidiary." SWS has a Market Perform Rating and a $5.50 PT. SWS traded at $5.94 yesterday at closing.